Srinagar, Aug 13: Chief Secretary Atal Dulloo on Thursday reviewed the employee-centric financial and social security benefits arising from implementation of the Four New Labour Codes for private-sector workers in Jammu and Kashmir, stressing the need to ensure that the reforms translate into greater wage protection, financial security and formalisation of employment.

The meeting, attended by senior officers from the Finance, Law, Labour and Employment departments, examined the implications of the Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health & Working Conditions Code, 2020.
Together, the four Codes consolidate 29 erstwhile labour laws into a unified framework aimed at simplifying compliance for employers while strengthening statutory protections for workers.
Dulloo said the new framework should not be viewed merely as a compliance exercise but as an opportunity to create a more equitable, transparent and financially secure employment ecosystem in J&K.
He directed the Labour & Employment Department and other concerned agencies to ensure that workers and employers are adequately informed about the financial and social security benefits available under the new framework.
Secretary Labour & Employment Kumar Rajeev Ranjan informed the meeting that the new framework moves towards universal wage protection, extending minimum-wage provisions across employments rather than limiting them to the earlier scheduled-employment approach.
The Codes also provide for a National Floor Wage, ensuring that minimum wages fixed by States and UTs cannot fall below the applicable national floor wage.
The framework further provides for an employer contribution of 12 per cent towards EPF, subject to the applicable statutory wage ceiling, thereby strengthening employees’ retirement savings. For eligible employees covered under ESI, the employer contribution is 3.25 per cent of gross wages, within the prescribed wage ceiling.
A major focus of the review was the protection available to fixed-term employees. The new framework formally recognises fixed-term employment and provides for statutory benefits at par with permanent employees for the period of employment, subject to applicable provisions.
Fixed-term employees are also entitled to pro-rata gratuity after one year of continuous service, calculated at the prescribed rate of 15 days’ wages for every completed year of service, subject to statutory conditions and ceiling.
The government said the provisions are expected to provide greater financial certainty to workers employed on fixed-term arrangements while encouraging formalisation in the private sector.
Gig workers brought into social security net
The Codes also introduce dedicated provisions for gig and platform workers, alongside a broader institutional framework covering unorganised and building workers.
Dulloo emphasised that the changing nature of employment must be reflected in implementation so that workers outside traditional permanent employment arrangements are not left without adequate social security protection.
The reforms also envisage a technology-driven compliance system, including single registration, single licence, unified annual returns and mandatory appointment letters for employees.
The meeting concluded with an emphasis on translating the labour reforms into better wages, stronger social security, enhanced retirement benefits and greater financial protection for workers across J&K, while maintaining a transparent and simplified compliance regime for employers.